LCI Industries (NYSE:LCII) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:30 am ET


LCI Industries (NYSE:LCII) Q2 2020 Earnings Conference Call - Final Transcript


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Brian M. Hall

million for capital expenditures and $33 million was returned to shareholders in the form of dividends. We are operating with a strong balance sheet as we continue to pay down debt and generate strong cash flow, maintaining available borrowings of $251 million under our current credit facility.

At the end of the second quarter, cash and cash equivalents totaled $62 million, up from $35 million at the beginning of the year. As of July 31, 2020, we maintained a total liquidity position of $272 million, enhanced by the strategic cost management actions we put into place during the quarter to mitigate the impact of COVID-19. For the full-year 2020, we are targeting capital expenditures between $40 million and $50 million as we continue to delay nonessential expenditures in the wake of uncertainty around COVID-19.

At the end of the second quarter, we had outstanding net debt position of $640 million and remain in compliance with our debt covenants. As a reminder, we have no significant debt maturities until 2022. Currently, our leverage position relative to pro forma EBITDA, which includes the EBITDA of acquisitions, stands at just under 2.3 times. And we will continue to prioritize paying down debt as we work towards meeting our long-term leverage target of 1 times to 1.5 times net debt to EBITDA. Our financial position remains strong with ample liquidity and flexibility to manage through a variety of environments and continue executing on our strategic initiatives.

That is the end of our prepared remarks. Operator, we're ready to take questions. Thank you.